Boehner's Debt Deal Proposal

Consider this a follow up to Ace's post on Reid's plan, which Obama has now endorsed because it meets his primary objective of one hike that gets beyond November of 2012.

This is the plan that Obama will be calling "not a plan" (while offering no plan of his own) by the end of the day.

Republicans insisted if the President wants his debt ceiling increase, the American people will require serious spending cuts and reforms. This two-step approach meets House Republicans' criteria by (1) making spending cuts that are larger than any debt ceiling increase; (2) implementing spending caps to restrain future spending; and (3) advancing the cause of the Balanced Budget Amendment - without tax hikes on families and job creators. While this is not the House-passed "Cut, Cap, & Balance," it is a package that reflects the principles of Cut, Cap, & Balance. Here is more information on the plan:

--Cuts That Exceed The Debt Hike. The framework would cut and cap discretionary spending immediately, saving $1.2 trillion over 10 years (subject to CBO confirmation), and raise the debt ceiling by less - up to $1 trillion.

--Caps To Control Future Spending. The framework imposes spending caps that would establish clear limits on future spending and serve as a barrier against government expansion while the economy grows. Failure to remain below these caps will trigger automatic across-the-board cuts (otherwise known as sequestration).

There would be a separate vote on a Balance Budget Amendment by October 1 of this year, a joint commission to come up with another 1.8 trillion in savings over 10 years that would be subject to an up or down vote and no new taxes.

Are people going to love this? No. Some don't want to raise the debt ceiling at all and we'd have to see if the "immediate" cuts are real or some gimmicks. Also some people want the BBA voted on now. Personally, I don't care about that. It's never going to pass. If we could get 2/3's of both houses to pass it, we could get a simple majority to actually pass a balanced budget.

As Boehner said, it's not "Cut, Cap and Balance" but that died in the Senate. This is in that spirit and it might pass. Given that we only have control over 1 out of 3 political levers of power, that's not bad. Serious entitlement reform along the lines of the Ryan plan was never on the table with a Democratic Senate and Obama in the White House. Plus, it cuts Obama out so he gets no credit or his "balanced" (aka "hike taxes'), so Mr. Adult in the Room looks like the brat he is being dragged along, kicking and screaming.

If, big if, Boehner can pull this off and it's acceptable to the majority of the House GOP caucus, he just might end up rolling Obama, Reid and the Gang of 6 in the Senate. Not a bad days work. I won't even make fun of him if he cries when it's done.